Real GDP tends to understate our economic well-being because it
Real GDP tends to understate our economic well-being because it
Includes the value of volunteer activity
Includes health care costs related to the consumption of cigarettes
Includes expenditures on crime prevention equipment .
Excludes the value of leisure
Includes the value of services produced in the home
Homework Answers
Excludes the value of leisure.
reason: Leisure is an economic good in the sense more leisure brings down economic growth. Leisure is also important because we need leisure to enjoy the increased output. That's when leisure becomes all the more valuable to us. However, leisure does not get measured in real GDP figures.
23. Choose the best answer. Real GDP tends to overstate our economic well-being by including a. payments for cleani...
23. Choose the best answer. Real GDP tends to overstate our economic well-being by including a. payments for cleaning up the environment. b. estimates of the constant-dollar values of illegal products, C. expenditures on crime prevention, payments for cleaning up the environment, and repairs to structures destroyed by storms. d. the value of households' leisure time. 24. In macroeconomics, the long run differs from the short run in that in that a. in the short run, the aggregate supply curve...
GDP would be a better measure of economic well-being if it included: Select one: a. the...
GDP would be a better measure of economic well-being if it included: Select one: a. the costs of education. b. the total value of intermediate goods. c. the market value of final goods. d. the value of leisure. The government purchases component of GDP includes: Select one: a. purchases of final goods and services. b. interest payments on government debt. c. transfer payments. d. payments made to social security recipients.
Explain the instances where Real GDP per person might be a misleading indicator of economic well-being.
Explain the instances where Real GDP per person might be a misleading indicator of economic well-being.
Which of the following suggest that real per capita GDP is not a perfect measure of...
Which of the following suggest that real per capita GDP is not a perfect measure of economic well-being? a. population varies across counties b. GDP does not measure the value-added created during home production c. GDP does not take into account the income distribution d. GDP underestimates the value of goods and services produced in the economy because of inflation e. GDP inaccurately measures the value of goods and services produced by the government When do we say that the...
13. In a particular country, the gross domestic product (GDP) increased by 10 percent during the...
13. In a particular country, the gross domestic product (GDP) increased by 10 percent during the year. At the same time inflation was 6 percent. Therefore real GDP a fell by 10 percent. b. fell by 4 percent. c. rose by 10 percent. d. rose by 6 percent. e. none of the above. 14. One of the major determinants of increasing real GDP per capita and therefore a country's standard of living is a. increasing labour productivity. b. decreasing labour...
According to the textbook, which of the following statements is (are) correct? (x) If real GDP...
According to the textbook, which of the following statements is (are) correct? (x) If real GDP is higher in one country than in another, it is not necessarily true that the standard of living is higher in the country with the higher real GDP. (y) Real GDP per person is not a perfect measure of the well-being of individuals in society because it excludes things like leisure time, the value of goods produced at home, and environmental quality. (z) Poor...
34. All of the following will increase potential real GDP except a. an increase in the...
34. All of the following will increase potential real GDP except a. an increase in the amount of natural resources available. b. an increase in the percentage of the population that attends college. c. an increase in the cost of living (money prices). d. an improvement in technology. 35. Which of the following is not a problem associated with Real GDP as a measure of social welfare? a. It excludes intermediate goods as a separate entry. b. It does not...
Retained earnings are the part of income that households retain after paying taxes. business retain after...
Retained earnings are the part of income that households retain after paying taxes. business retain after paying taxes. corporations do not pay to their owners in the form of dividends. corporations pay to their owners in the form of dividends. UNIT-1 & UNIT-2 MCQS MARKS : 1.0 GDP is a good but not perfect measure of economic well-being because it leaves out each of the following EXCEPT the quality of the environment. leisure. medical services. volunteer work. UNIT-1 & UNIT-2...
MULTIPLE CHOICE (50 Marks – 1 Mark each) 1. Macroeconomics seeks to understand a. economic growth,...
MULTIPLE CHOICE (50 Marks – 1 Mark each) 1. Macroeconomics seeks to understand a. economic growth, inflation and business cycles. b. product demand, product cost and profit maximization, c. economic growth, the banking sector and individual markets. d. industry sales, marketing strategies and corporate growth. e. the effects of government spending, taxation and corporate growth. A country's real Gross Domestic Product (GDP) measures the a. dollar income earned by the nation's producing sector. b. market value of final goods and...
Which of the following is NOT true about gross domestic product (GDP)? a. It includes only...
Which of the following is NOT true about gross domestic product (GDP)? a. It includes only final goods and services. b. The values are measured in current dollars c. Intermediate goods and services are excluded to prevent double counting. d. It includes the value of transfer payments. The gross domestic product (GDP) excludes: a. the value of intermediate goods produced. b. the spending by government on new roads and bridges. c. household spending on goods and services. d. the increase...
23. Choose the best answer. Real GDP tends to overstate our economic well-being by including a. payments for cleaning up the environment. b. estimates of the constant-dollar values of illegal products, C. expenditures on crime prevention, payments for cleaning up the environment, and repairs to structures destroyed by storms. d. the value of households' leisure time. 24. In macroeconomics, the long run differs from the short run in that in that a. in the short run, the aggregate supply curve...
13. In a particular country, the gross domestic product (GDP) increased by 10 percent during the year. At the same time inflation was 6 percent. Therefore real GDP a fell by 10 percent. b. fell by 4 percent. c. rose by 10 percent. d. rose by 6 percent. e. none of the above. 14. One of the major determinants of increasing real GDP per capita and therefore a country's standard of living is a. increasing labour productivity. b. decreasing labour...
MULTIPLE CHOICE (50 Marks – 1 Mark each) 1. Macroeconomics seeks to understand a. economic growth, inflation and business cycles. b. product demand, product cost and profit maximization, c. economic growth, the banking sector and individual markets. d. industry sales, marketing strategies and corporate growth. e. the effects of government spending, taxation and corporate growth. A country's real Gross Domestic Product (GDP) measures the a. dollar income earned by the nation's producing sector. b. market value of final goods and...
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